WATPAC CLINGS TO CONSTRUCTION AS PROFIT SUFFERS

Written on the 24 August 2016 by Brisbane Business News

WATPAC CLINGS TO CONSTRUCTION AS PROFIT SUFFERS

SPENDING 12 months riding a down-turning industry, Watpac Limited (ASX: WTP) has emerged a little bruised, yet not completely out for the count, following its full year result.

Posting a statutory loss after tax this morning of $21.4 million, down from an $11.5 million loss in FY15, the Brisbane giant admits its result was once again affected by the volatility faced by its mining and civil segment.

However, Watpac chair Richard McGruther notes that a slightly improved revenue of $1.2 billion, supported largely by the company's construction segment, hoisted Watpac back to its feet to close out the year.

"As previously reported the group's mining and civil business recorded a number of impairments in the first half of the reporting period, however the business unit has pleasingly returned to profitability in the second half of the financial year," says McGruther.

"The construction business continued to operate profitably and achieved a solid return on equity in FY16 despite the impact of two significant loss-making projects."

Watpac's mining and civil revenue fell to $166.5 million from a previous result of $284 million, while construction project revenue buoyed at $1.04 billion, up from the FY15 result of $929 million.

McGruther is optimistic that Watpac won't be going down with Australia's mining ship, and instead will focus on its more profitable sectors in the year ahead.

"We have recognised the changed dynamics of the resources sector and tailored our business to suit these market conditions accordingly," he says.

"Despite the challenges faced in FY16, we have made substantial inroads on many of our objectives, aimed at creating long-term value for all of our stakeholders."

Referring to a number of new projects on the horizon within varied sectors, managing director Martin Monro (pictured) says the future looks brighter.

"We have strengthened our place in a number of sectors including health, education, defence & secure environments and the delivery of social infrastructure through Public Private Partnerships," says Monro.

Significant projects underway for Watpac include the Victorian Schools PPP, the Ryde Garden residential development in Sydney and the Mary Lane hotel and residential precinct in Brisbane.

Watpac also recently won the title of Project of the Year for its delivery of 180 Ann Street in Brisbane, awarded by Master Builders.

No dividends have been declared for the FY16 period.

Watpac is currently trading at around 80c on the ASX, down almost 15 per cent from opening at 94c.

READ MORE FROM WATPAC:


Author: Brisbane Business News Connect via: Twitter

Latest News

2017 BRISBANE TOP COMPANIES REVEALED

WHILE Queensland is regarded as an economy in transition with the winding down of the mining boom, the 2017 top 50...

2017 BRISBANE TOP COMPANIES 1-10

FROM insurance and banking to travel, gambling, retail, property and pizza, these "heavyweights" have ha...

2017 BRISBANE TOP COMPANIES 11-20

RETAIL, property, an airline, cars, real estate, software services, energy, agriculture, veterinary services bathr...

2017 BRISBANE TOP COMPANIES 21-30

JEWELLERS Michael Hill International listed in 2016 with a half-billion dollar market capitalisation and a new CEO...

Related News

FURNITURE DISRUPTOR SET TO SHARE HIS ONE OF A KIND BUSINESS MODEL

IT'S no secret that Australians love homemaking. Their ceaseless quest to create the perfect place to call hom...

WEEDING OUT THE ASX'S BURGEONING CANNABIS TREND: 8 COMPANIES TO WATCH

A NICHE is budding on the ASX in the form of medical cannabis, an industry which has been on the country's rad...

FRESH CLASS ACTION TO REVEAL ANOTHER SIDE OF SLATER AND GORDON DOWNFALL

ACA LAWYERS has issued a formal letter of demand to Andrew Grech (pictured), managing director of Slater and Gordo...

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter